Assume that the characteristic functions of different coalitions in a three-person group are given by: V(1,2,3) = $60 V(1,2) = $40, V(2,3) = $30, and V(1,3) = $35 . The values created by the individuals separately are given by: V(1) = $20, V(2) = $16, V(3) = $10 . Which of the following allocations will lie within the core?
a. Payoffs to individuals 1,2, and 3 are $21, $17,and $22 respectively.
b. Payoffs to individuals 1,2, and 3 are $31, $17, and $12 respectively.
c. Payoffs to individuals 1,2, and 3 are $21, $26, and $13 respectively.
d. Payoffs to individuals 1,2, and 3 are $25, $18, and $17 respectively.
D
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